Adidas still isn't sure what to do with the $1.3 billion of Yeezy shoes it's sitting on after splitting with Kanye West.
reports, new Adidas CEO Bjorn Gulden addressed the issue in a conference call Friday, May 5, saying that are “getting closer and closer to making a decision” and the “options are narrowing.”
Many of the options Adidas is weighing, however, are imperfect. As Gulden previously outlined, selling the shoes outright would mean paying royalties to West; they don’t want to remove any Yeezy branding and then sell the shoes, because that would be dishonest; and giving the shoes away would likely lead to a swath of resales on secondary markets.
It’s also unclear exactly how many pairs of Yeezy shoes Adidas still has. Gulden declined to provide a number “because then the consumer would know how many we have and that could have an impact on demand.” The Yeezy split has been financially brutal for both Adidas and West, with Gulden admitting in a statement that it is “of course hurting us.” Adidas reported hundreds of millions in lost sales since ending the partnership, and the split could dent earnings by about $549 million in 2023 if the company doesn’t sell the shoes.
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